Valentino sues to quit Fifth Ave — maybe forever

Luxury boutique blames Covid-19, e-commerce in request to end lease

New York /
Jun.June 22, 2020 02:00 PM
Valentino store on Fifth Avenue and Valentino CEO Jacopo Venturini (Valentino, Nick Hunt/Patrick McMullan via Getty Images) 

Valentino store on Fifth Avenue and Valentino CEO Jacopo Venturini (Valentino, Nick Hunt/Patrick McMullan via Getty Images)

Even for Valentino, the rent on Fifth Avenue is too damn high.

The luxury high-fashion boutique is suing its landlord to terminate the lease on its four-story store in a coveted section of the retail corridor, the Wall Street Journal reported.

The pandemic has been a disaster for Valentino SpA, but tellingly, its lawsuit argues that Fifth Avenue would not make sense for its business even after the pandemic.

Valentino started its lease in August 2013, when ground floor retail rents in that section averaged $2,513 per square foot, according to data from property brokerage Cushman & Wakefield. Valentino’s lease is set to end in 2029.

“In the current social and economic climate, filled with Covid-19-related restrictions, social distancing measures, a lack of consumer confidence and a prevailing fear of patronizing in-person, ‘non-essential’ luxury retail boutiques,” its complaint says, “Valentino’s business at the premises has been substantially hindered and rendered impractical, unfeasible and no longer workable.”

Moreover, it claimed that the location is no longer necessary to reach its customers as more shift to e-commerce. The situation is unlikely to change “even in a post-pandemic New York City (should such a day arrive),” according to the complaint.

Robert Cyruli, an attorney for the landlord — an LLC controlled by Fimalac, which is French billionaire Marc de Lacharrière’s Paris-based holding company — declined to comment to the Journal, except to say, “My client won’t be litigating through the media.”

The lawsuit is the latest in a series of disputes between landlords and their tenants, which are likely to reshape retail moving forward.

[WSJ] — Sasha Jones

Correction: An earlier version of this story misidentified the owner of Valentino’s Fifth Avenue location as Savitt Partners. Rather, it is a limited liability company controlled by French company Fimalac.


Related Articles

arrow_forward_ios
Photos courtesy of HAP Investments
HAP Investments unveils new plans for Journal Square high-rise
HAP Investments unveils new plans for Journal Square high-rise
Photo Illustration of BioMed Realty CEO Tim Schoen and Alexandria Real Estate Equities CEO Joel S Marcus. (Getty, BioMed)
Life sciences boom continues with 36M sf in works
Life sciences boom continues with 36M sf in works
From left: Flex’s Shragie Lichtenstein; Piñata’s Lily Liu; NestEgg’s Eachan Fletcher; and Till’s David Sullivan
These startups want to guarantee your rent
These startups want to guarantee your rent
1529 62nd St, Brooklyn, NY (Google Maps)
Mid-market i-sales top $100M for third straight week
Mid-market i-sales top $100M for third straight week
Clockwise from top left: Seattle, Boston and New York City (Photo Illustration by Kevin Rebong for The Real Deal)
Real estate prices fell more in Manhattan than anywhere else in 2020
Real estate prices fell more in Manhattan than anywhere else in 2020
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
As of November, Target had 1,897 stores nationwide. (iStock)
Target’s expansion continues with takeover of old Kmart stores
Target’s expansion continues with takeover of old Kmart stores
Related’s Stephen Ross and 265-275 Cherry Street (Google Maps; Getty)
NYC investment sales showed signs of recovery at end of 2020
NYC investment sales showed signs of recovery at end of 2020
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...